Transcript of "Living Villages 2 - Community Pubs"

2.
Community ownership? <ul><li>In the past it was always the option of last resort – to be used if the only alternative was the loss of a valued pub. </li></ul><ul><li>This is now changing, as community ownership can be seen to bring benefits over and above conventional commercial ownership and operation. </li></ul>

3.
Community ownership: <ul><li>Why should a community buy its pub? </li></ul><ul><li>To secure the future of a valued asset </li></ul><ul><li>To be able to influence the direction of the business: delivering the needs of a local community </li></ul><ul><li>To put a pub on a sustainable footing </li></ul><ul><li>To remove the threat from alternative use </li></ul><ul><li>Options to further diversify </li></ul><ul><li>Ensures financial and emotional buy-in </li></ul>

5.
Live & Let Live <ul><li>“Dream On” said CAMRA HQ! </li></ul><ul><li>Herefordshire CAMRA helped raise £158K in just six weeks in 1997 </li></ul><ul><li>Put together a legal vehicle and signed-up shareholders </li></ul><ul><li>Ultimately the co-op wasn’t necessary, when it was sold to a private buyer in 2002 </li></ul><ul><li>Pub is thriving today – objective achieved </li></ul>

8.
Old Crown Inn <ul><li>Bought by the village in August 2003 </li></ul><ul><li>58 investors invested £1,500 each </li></ul><ul><li>Secured the future of the pub </li></ul><ul><li>Village co-operative put together with help of Co-operative & Mutual Solutions </li></ul><ul><li>Run as an Industrial Provident Society </li></ul><ul><li>Established as a template model for community ownership </li></ul>

10.
What is required? <ul><li>Money – raise through share subscription, grants, loans and donations </li></ul><ul><li>Business plan – will it work as a business? </li></ul><ul><li>Share prospectus – selling the vision (and the shares) to the community </li></ul><ul><li>Finding someone to run the business </li></ul><ul><li>Putting in place robust and appropriate processes </li></ul>

11.
Buying the Pub <ul><li>Ensuring a market price sale </li></ul><ul><li>Raising the capital – what if you fail? </li></ul><ul><li>The owner doesn’t have to sell, even with the Localism Act and ‘Right to Buy’ </li></ul><ul><li>Consider refurbishment costs </li></ul><ul><li>Consider running costs </li></ul><ul><li>However, it DOES happen! </li></ul>

13.
Butchers Arms, Crosby Ravensworth <ul><li>Idea of community purchase conceived in October 2009 as no buyers for pub </li></ul><ul><li>Community sounded out – were they interested? </li></ul><ul><li>Similar pubs visited elsewhere – what could be learnt from their experience? </li></ul><ul><li>Share prospectus and business plan issued early 2011: shares from £250 </li></ul>

15.
Butchers Arms – the plan <ul><li>Over £300K raised from grants and loans, but over 90% share subscription </li></ul><ul><li>Shares pay a dividend of 3% from Year 2 </li></ul><ul><li>Tenant’s rent pays dividends </li></ul><ul><li>Local community maintains pub – the equity is their ultimate guarantee </li></ul><ul><li>Tenant given contract to run business </li></ul><ul><li>Pub opened in August 2011 </li></ul>

16.
CAMRA – how we can help <ul><li>We can give advice and technical support </li></ul><ul><li>We will also get others involved (CMS etc) </li></ul><ul><li>Help with business plans and other documentation </li></ul><ul><li>Help with marketing, publicity and strategy </li></ul><ul><li>CAMRA members will buy shares </li></ul><ul><li>If we don’t know something, we will know some-one who does </li></ul>

17.
Herefordshire’s first community-owned pub CAMRA is currently working with two local communities looking to develop community buy-outs for their local pub. One is shortly to issue a Share Prospectus and Business Plan.